If you are seeing please read completely and help me out🙏🏻
My father (not financially literate) took a business loan from IDFC FIRST Bank. The loan is already classified in the bank system as MSME / Micro / Service.
In the KFS / loan terms, there is a clause saying:
- MSE/MSME loans can be foreclosed anytime with nil charges
- But for foreclosure, the borrower must submit the latest financial year Udyam certificate
This is where the problem starts.
What happened:
During the original loan application, the bank’s loan/PM team created or used a Udyam/MSME registration without informing us at all. We were never clearly told they had done this, never given the certificate, and never told what exact registration they used.
Later, when we wanted to foreclose the loan, the bank asked us for the latest financial year (FY 2026) Udyam certificate for the old/original Udyam linked to the loan.
The issue is:
- We had no idea the bank had already created/used a Udyam during loan processing
- Because of that, in Dec 2025, I created another Udyam on my father’s Aadhaar/mobile because:
I genuinely thought no Udyam existed
I wanted proof that my father has a workshop/small business
I thought it would be useful later for MSME/business purposes
So now there are 2 Udyam registrations:
Old/original Udyam – apparently created/used by the bank during loan application in Nov 2025 (without informing us)
New Udyam – created by me in Dec 2025, because I didn’t know the old one existed
Why this is confusing:
- The old Udyam shows my father’s mobile number
- But when the bank supposedly created/used it in Nov 2025, we never received any OTP on that mobile
- Then when I created another Udyam in Dec 2025, the portal still allowed it on the same Aadhaar/mobile
- I don’t understand how the Udyam system allowed 2 registrations on the same Aadhaar, when the official rule says one enterprise should not have more than one Udyam
Another big problem:
- The bank is now asking for the latest FY 2026 Udyam certificate for the old/original Udyam
- But on the official Udyam website, when I try to retrieve/check the old Udyam, it says the registration does not exist
- I can only see/find the old one through another MSME-linked portal, not properly through the main official Udyam site
- So the bank is asking for a latest-year certificate for a registration that I cannot properly access/download from the official portal
To make it worse:
- The bank’s loan guy seems to be trying the wrong portal flow (new registration flow) and blaming “site issues” instead of just validating the existing MSME/Udyam records already linked to the loan
- He already has screenshots of both the old and new Udyam records from me
- He promised closure by Saturday, but I’m not confident
My core concern:
Since the KFS says foreclosure is allowed for MSME loans with nil charges subject to latest financial year Udyam certificate, can the bank now block foreclosure because:
- the original Udyam was created/used by their own team without informing us
- the original Udyam cannot be properly retrieved from the official portal
- there is now a second Udyam created later in good faith because we were never told about the first one
My questions:
If the loan was already sanctioned/disbursed as MSME by the bank, can they deny foreclosure because the old Udyam is not retrievable from the official portal, even though they themselves created/used it?
Can they say the new Udyam is invalid for foreclosure because it’s not the original one linked to the loan?
How is it possible the Udyam system allowed 2 registrations on the same Aadhaar/mobile?
If the original Udyam can’t be properly accessed on the official portal, what is the right way to prove compliance with the “latest financial year Udyam certificate” condition?
If the bank delays or denies this, is the best escalation path Branch Manager → Nodal Officer → RBI Ombudsman?
Would really appreciate advice from anyone familiar with:
- MSME/business loans
- Udyam/UAM/legacy registration issues
- IDFC FIRST foreclosure/prepayment handling
- banking complaints / escalation in India